Moody’s downgrades Turkish debt

The ratings agency Moody’s lowered Turkey’s sovereign debt rating rom Ba1 to Ba2, putting it two marks below investment grade and deeper into junk status, the Financial Times reports. Turkey’s “faltering institutional strength” during its ongoing post-coup attempt state of emergency, as well as large external financing needs and a deteriorating political climate were cited as key reasons for the downgrade. Specifically, Moody’s pointed out that Ankara is failing to control double-digit inflation as Erdogan pressures the Turkish central bank not to raise interest rates and injects stimulus in the economy in pursuit of short-term gains.